Sustainability Report Considers These Views When Reviewing Our Disclosures Sustainability Goals and Progress
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Delivering A Brighter Future, Together. 2019 SUSTAINABILITY & CORPORATE RESPONSIBILITY REPORT GOVERNING 2019 Sustainability & Corporate Responsibility Report INTRODUCTION OVERVIEW WITH PURPOSE PLANET PEOPLE PROSPERITY APPENDIX 2 0.0 INTRODUCTION 3 Measuring our Progress 19 4.0 PEOPLE 50 A Message from Our CEO 4 Stakeholder Inclusiveness 20 Building Our Reputation as a Great Place to Work 52 2019 Highlights 6 Materiality 22 Creating the Conditions for People to Flourish 54 A Message from Our Sustainability and 8 Principles-based Approach 24 Capitalizing on Capability 69 Corporate Responsibility Committee Our Behaviors, Mission and Vision 25 KBR and Ethics 27 5.0 PROSPERITY 74 1.0 OVERVIEW 9 Risks and Opportunity Oversight 29 Our Social Value Program 76 Our Sustainability Journey - 10 Community and Social Vitality 80 Building a Foundation for the Decade of Action 3.0 PLANET 32 Supporting Human Rights 82 KBR’s Ten Sustainability Pillars 11 Environmental Impact 34 Employment and Wealth Generation 86 About Us 12 Technology Solutions that Drive Sustainability 41 About this Report 87 for Our Clients Memberships of Association 87 2.0 GOVERNING WITH PURPOSE 14 Climate Change: Mitigation and Adaptation 47 Sustainability Oversight 16 Managing Our Carbon Footprint 48 6.0 APPENDIX 88 Our Sustainability Approach 17 GOVERNING 2019 Sustainability & Corporate Responsibility Report INTRODUCTION OVERVIEW WITH PURPOSE PLANET PEOPLE PROSPERITY APPENDIX 3 Introduction In This Section By committing to sustainability, A Message from Our CEO 3 2019 Highlights 6 we take a shared responsibility for Step One Step Two One Ocean 7 achieving a better world. A Message from Our Sustainability and 8 Corporate Responsibility Committee UN Global Compact GOVERNING 2019 Sustainability & Corporate Responsibility Report INTRODUCTION OVERVIEW WITH PURPOSE PLANET PEOPLE PROSPERITY APPENDIX 4 Message from Our CEO Step One Step Two KBR’s One Ocean Message from Our Sustainability & Corporate Responsibility Committee A Message from Our CEO As I write this, the world is in the midst of a global health crisis Our first objective was to focus on strengthening our internal sustainability efforts — unlike anything experienced in generations. Over the course examining our own carbon footprint, determining ways to reduce waste at our sites, of the past year, COVID-19 has caused seismic shifts in the way investigating a switch to smart meters and renewable energy and assessing our travel we live, interact and do business. However, as much as this has policy, for example. By measuring our 2019 carbon footprint, we have created a baseline disrupted our lives, it has also given us a chance to embrace from which to target reductions in our carbon emissions over time. In the short term, we change and think differently. I’m proud to say that at KBR, it have kicked off our Climate Action Plan by offsetting our 2019 carbon emissions to be carbon has been a tipping point for transformation, and we have used the opportunity to reimagine neutral. We are now developing a plan to achieve net-zero carbon emissions by 2030. how we do business. It’s taught us the importance of resilience and the need for agility and diversity. It has also taught us that together, we can take on challenges of this magnitude and The Global Sustainability Committee also developed a company-wide sustainability continue to thrive. campaign. We began by broadening our industry-leading Zero Harm safety culture to include our sustainability objectives, because we believe that Zero Harm is not only about doing what We have not lost sight, however, of the other challenges taking place in the world today, is right to keep ourselves and others safe and healthy, but it’s also about doing what’s right for especially climate change, environmental degradation and social upheaval that influences our planet, people, communities and business. The campaign included the introduction of our our business environment. ten Sustainability Pillars, the key areas within the company where we are focusing our efforts to mitigate our social and environmental impact. In 2019, the year covered in this report, I established our Global Sustainability Committee made up of a diverse group of our employees. This was in response to the strategic overview In addition to this, we audited the business for projects, initiatives and technologies that provided by KBR’s Sustainability and Corporate Responsibility Board Committee. This Board facilitate positive environmental and social impact through the work we do with our clients. Committee set out a corporate sustainability policy, and the Global Sustainability Committee We found over 60 areas where we are already increasing energy efficiencies; extending asset has been adapting procedures and management approaches to reinforce our social and life; developing technologies to capture and sequester carbon; improving water efficiencies environmental impact. through innovative infrastructure; harnessing wind power through the development of floating GOVERNING 2019 Sustainability & Corporate Responsibility Report INTRODUCTION OVERVIEW WITH PURPOSE PLANET PEOPLE PROSPERITY APPENDIX 5 Message from Our CEO Step One Step Two KBR’s One Ocean Message from Our Sustainability & Corporate Responsibility Committee wind farms and substations; developing electric vehicle charging platforms; and others. As creative thinkers with diverse ideas, backgrounds and perspectives. For this reason, we a company with such a wide scope of services, technologies and expertise, we recognize we developed an action plan for the establishment of the Global Inclusion and Diversity Council, have an incredible opportunity to drive positive change, innovation and improvements for for which I am the executive, and I appointed a dedicated leader for KBR’s Inclusion and key markets by assisting our clients in their sustainability journey. Diversity initiative to champion our mission and vision in this area. We are committed to developing a workplace culture where everyone can reach their full potential while being Crucially, we are also well positioned to become global leaders in energy transition through themselves at work. a combination of expertise and experience in designing and managing mega projects and developing and executing on large-scale government contracts, coupled with our In this report, you will read about the dedication of our people, from the determination of proprietary technology in key areas, such as ammonia and hydrogen. This work will support executives to strategically embed sustainability at the policy level, to helping customers the move toward low-carbon economies and net-zero plans for governments and industries mitigate their environmental impact, right through to our graduates, who have volunteered over the next decade. time and offered insight and ideas toward driving innovation and positive impact for the Planet and People. Most importantly, we know we can only achieve this with our incredible people, who are at the heart of our business. It is their passion, teamwork, trust and drive towards a sustainable One of the highlights you will read about in the report is our sustainability education future that underpins our success. program, One Ocean, which we launched globally in schools in Saudi Arabia, India, Singapore, Poland and Australia, and also with local environmental charities in the U.S., Creating and promoting a culture that puts the safety and well-being of our people, both connecting with more than 1,000 students. This program is part of our effort to build a resilient physical and mental, is at the forefront of our efforts. We pride ourselves on our Zero Harm and diverse talent pipeline by showing the next generation that our industry can be leaders culture and continue to lead the way in developing a safe and caring environment for all in developing creative and innovative solutions towards sustainable development. Ultimately, our employees and the communities in which we operate. we know that it is only with a deep commitment and sense of purpose that we will prosper and grow for the long term. We also recognize that an inclusive and diverse workforce is fundamental to our success. To meet the challenges that sustainable development will bring, we need innovative, GOVERNING 2019 Sustainability & Corporate Responsibility Report INTRODUCTION OVERVIEW WITH PURPOSE PLANET PEOPLE PROSPERITY APPENDIX 6 Message from Our CEO Step One Step Two KBR’s One Ocean Message from Our Sustainability & Corporate Responsibility Committee Step One to Carbon Neutrality We commissioned a leading third-party solution provider for corporate climate action, ClimatePartner, to calculate emissions for scopes 1 and 2 and category 6 of scope 3 (business travel) in 2019. OUR CARBON FOOTPRINT We used our footprint to inform our offset program for 2019 to reach carbon neutrality for this year. Heating 2.73% Cooling Scope 1 Train travel 0.34% We became carbon neutral by purchasing carbon credits from wind farms in 0.02% 3.77% India and contributing to projects run by the Plastic Bank across the world. Vehicles 0.70% Electricity 30.14% Scope 2 Step Two to a Net-zero Commitment 30.14% Air travel Scope 3 Our 2019 footprint helped identify carbon emission hotspots and we will set carbon 66.07% 66.09% reduction targets defining our climate action goals for 2020 and onwards. We will continue to reduce scope 1 and 2 emissions, and we will consider and expand scope 3 categories, in line with the requirements for setting science-based